Mexico and Canada announce one-month pause in threatened Trump tariffs

Leaders from both nations have revealed actions aimed at preventing the imposition of proposed 25-percent tariffs in the short term.

Mexico's President Claudia Sheinbaum, Canadian Prime Minister Justin Trudeau, and US President Donald Trump have declared a month-long suspension of the extensive US tariffs that were to be imposed on exports from Mexico and Canada.

The leaders made the announcement regarding the postponement of the tariffs through social media posts on Monday, just a day prior to when the measures were set to take effect. Sheinbaum was the first to disclose the suspension.

She indicated that, following their conversation, Mexico would deploy 10,000 National Guard troops to its northern border to "curb drug trafficking from Mexico to the United States".

Sheinbaum further noted that the United States was also taking measures to stop the flow of high-powered firearms into Mexico, a factor that has historically bolstered organised crime within the country.

Trump subsequently made his own statement, referring to the dialogue with Sheinbaum as "very friendly" and commending the deployment of Mexico’s National Guard.

During his 2024 re-election campaign, Trump focused significantly on increasing tariffs on international goods entering the US as a strategy to strengthen the domestic industry.

Following his victory in November, he introduced a proposal for 25 percent tariffs on Mexico and Canada, two of the US's main trading partners. He contended that these stringent measures were essential to combat undocumented migration and drug trafficking across US borders.

However, economists caution that the tariffs could be the initial step towards a potential trade war, which might adversely affect consumers both in the US and globally.